Reported about 11 hours ago
The Bank of Canada has highlighted that inflation concerns are shaping its response to ongoing trade disputes, particularly the tariffs imposed by the U.S. Under Governor Tiff Macklem's leadership, the bank cut interest rates by a quarter percentage point but remains cautious about future changes. The central bank aims to manage inflation expectations amid the uncertainty caused by tariffs while recognizing its limited capacity to intervene effectively in the economy. As businesses face rising costs, the bank fears that initial price increases could lead to sustained inflation, placing more responsibility on the federal and provincial governments to support affected sectors.
Source: YAHOO